More States Move to Tax the Cloud

2/7/2013 3:13PM

Businesses have found out that using online software services can help them cut their technology costs, but many companies are now discovering it can also increase their tax bills. George Stahl joins digits. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... I ... some states on fixing things in the wild ... eyed is one of the latest ... legal shortstop for me ... to tell ... George ... example Internet services from a cloud not just ... via ... exec Andy is an example the tax could not keeping up with technology ... you know in advance of the citizens of the government's bookkeeping ... the famed area ... aam he didn't this when when ... he ... when there be a purchase of software you bought off the shelf and and the government would take the tax rate then and there ... but when you talk about class software and software is a service to get so much for marquee there is no pride to combine and in many states services are not tax ... code does not own real product and an Idaho it happens yes exactly ... and and and Idaho ... decided I was taken in the attack services ... has started to Tax clan out software ... because is the one to tap into this growing market for a fourth class software sales ... and it does with its seventeen billion dollar mark in the government's stake of its one Sunni what one make sure that they're getting pizza that someone was saying this now aam and this isn't a minimal all things having coming out ... of me and a referral for a while but now that we strive to catch the States I say sorry Eddie and that's what's coming up now is not exactly and not only are they pointing out that there are also reaching back to try to get their money ... from sales that have them before they change the law ... to reflect the tax on that's all that was very inventive has not yet go back to it ... why do we mentioned yet that is the text which is pretty and I guess I mean some some of them that they can try enough I'd be retroactive on the tennis I don't like what about our Constitution I can possibly know about this um maybe I would have ... done so long to some of their other states to dry aam did both of the system and other things the Kansas and Nebraska saying that that ... the sort of thing will remain exempt and this is a real potential for copies is a bit to start dealing with fifty different ways that their businesses are getting taxed based on what states they're they're making did that they're dealing with customers they can become a real hassle for them to figure out what the need to do to comply with all the states that now on when you find stuff on on these outside of my book on on Amazon visible but then you'll hear a Muslim attacks at all and am complex it's and it's a new offence of ... could could they just do it from the way you live in and George Stahl is for real it's um you know I mention somewhat ... I'm you know and did you know you you find the whole tax cuts of meat goes to the U of U two sticks ... they could be put to him putting controlling RTS to wear to businesses where the two businesses by IQ Wyoming where you live on is that I mean that we did ... all the way to bring in you knowing that yes yes what companies and businesses around the country around the world sand and when you're buying a software is a service ... you can obviously route that transaction to any part of your business in any country or in any state to avoid taxes ... and they will lament the will of the iPhone so the figure that out they will ... have viewed as a tax haven ... Mobility's thank you Brian for the plug